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Market Update - February 2010
Fri 5 Feb 2010
After
what seemed like a longer Christmas break than usual, we returned to our
offices on the first Monday in January refreshed and full of hope and
enthusiasm. After an initial flurry of activity, the snow started
falling on
Tuesday evening and that put paid to the rest of the week’s business for
us.
The following week started brightly again, but yet again we were hit by
snow,
and as a consequence spent more time re-arranging interviews than making
them.
Why couldn’t this have all happened between Christmas and the New Year?
Irrespective
of all this disruptive weather, the exciting news is that we have
noticed a
dramatic increase in the number of vacancies registered with us compared
with
this time last year. Sales vacancies are up by over 300% and Lettings
vacancies
by over 150%. At long last there appears to be an increased air of
confidence
throughout the industry that bodes well for the coming months and as I
write we
have just had our best two weeks for over two years.
Suddenly
we are struggling to find candidates again, and so are our clients
judging by
the number of calls we are receiving asking for staff. “Where have they
all
gone?” is a phrase we are hearing all too often from frustrated
employers with
empty desks that need staffing. It is quite evident that the majority of
people
who have left the industry in the last few years have gone forever.
Perhaps this
is a prime example of Darwin’s theory of evolution at work in estate
agency,
with it truly being a case of natural selection and survival of the
fittest!
For
us recruiters, the market is equally frustrating. At least 75% of our
current
vacancies are for an experienced sales or lettings negotiator with 12-18
months
experience. Unsurprisingly, such a candidate is nigh on impossible to
find. The
reason is quite simple: Nobody was recruiting 12 –18 months ago! What
this does
mean is that more and more of our clients are open to employing
inexperienced
staff. About one in four people we have placed this year have been at
trainee
level.
There
is, however, a contradiction in the market. Whilst we are experiencing a
strong
uplift in trading conditions, we still have a number of highly
experienced candidates
registered with us who are struggling to find a job. Employers are being
extremely fussy, particularly at a more senior level. If the job
specification
lists ten criteria that need satisfying, then unless all 10 boxes are
ticked
they will not employ. With regards to more experienced job hunters,
flexibility
and a harsh dose of realism are the keys if they are to be successful.
Too many
of our candidates are holding out for too much money and they just wont
get it
at the moment. Unfortunately for many of them, the old adage “it is
easier to
find a job when you have already got a job” remains as true today as
ever, and
the longer they are out of work the harder it becomes to get back in.
Overall
it is good news though with the demand for staff becoming even stronger
than it
was at the start of the year. This is not only the case in estate
agency.
According to the latest UK labour market monthly report on jobs
(produced by
KPMG in association with the Recruitment & Employment Confederation)
the last
two months have seen the fastest rise in permanent staff placements
throughout
the UK for thirty months! In fact, the growth in the number of staff
being
employed throughout the UK is the strongest since July 2007.
Reassuringly, we at
Property Personnel are witnessing exactly the same market conditions.
The
report also notes a significant decrease in candidate availability,
again
mirroring our experiences. Quite simply, there are more jobs available
with
less people competing for them.
Looking
at this data you might get the impression that the recession is over,
with
confidence undoubtedly returning to the private sector and the UK jobs
market
looking healthier today than at any time since the summer of 2007. The
worry
now is what effect the government’s anticipated public sector cuts will
have on
the jobs market that will play out over the next 12-18 months. For us in
estate
agency though, the worst seems to be over.
Anthony Hesse, Managing Director
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